New housing prices in Canada remain unchanged in November

Thursday, 10 January 2019 01:07:33 (GMT+3)   |   San Diego

According to Statistics Canada, new housing prices at the national level were unchanged for a fourth consecutive month. New home builders in 18 of the 27 census metropolitan areas (CMAs) reported flat or decreasing prices in November.

The largest declines were in Regina (-0.6 percent) and St. John's (-0.4 percent), with decreases in both CMAs linked to unfavorable market conditions.

Prices in Regina and St. John's have been down or flat for 10 out of 11 months in 2018. According to the Canada Mortgage and Housing Corporation, the inventory of newly completed and unsold single-family dwellings was up in both CMAs in November compared with the same month a year earlier. Single-family dwellings include row, single and semi-detached houses.

New home prices were down in the three CMAs surveyed in British Columbia. Lower selling prices were the primary reason for the 0.3 percent decrease in Vancouver, while builders in Victoria and Kelowna (both down 0.1 percent) tied the dip in prices to promotional offers to stimulate sales.

The largest price increases in November were in Ottawa (+0.6 percent) and Montréal (+0.4 percent), with construction costs listed as the primary reason for the gain in both CMAs.

Nationally, new house prices were unchanged year over year in November. Prices had been increasing each month on a year-over-year basis at the Canada level since January 2010.

For a sixth consecutive month, Ottawa (+4.9 percent) and London (+3.6 percent) registered the largest 12-month gains among the surveyed CMAs.

Among the eight CMAs reporting 12-month decreases in November, the largest decline was in Regina (-2.6 percent). Toronto saw prices drop 1.3 percent year over year in November. Annual price movements in this historically expensive CMA have been on the decline since April 2018.

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